“Applications of Mathematics in Business”

Before discussing the applications, let’s understand what business mathematics is

What is Business Mathematics?

It is a mathematics used by commercial enterprises for recording and managing

business operation. Its applications include

Linear Programming
Probability
Calculus
Linear Equation

Linear Programming:

It is useful in solving many management problems. And it’s applications are

Product Mix
Distribution Network
Corporate Restructuring
Facility Planning
Staff Scheduling
Financial Problem

Probability:

It is the quantitative measure of feasibility of something occurring. And its

applications are

Probability of Profitability
Evaluate Financial Risk
Decision Making
Improve Business Performance
Calculus:

It is the branch of mathematics that deals with limits, differentiation and

integration of functions of one or more variables. And its applications are:

Measuring the rate of increase in profit

Determining the amount of interest paid over the life of loan.
Maximization of profit
Decision making Process

Linear Equation:

It is a algebraic expression in which either an each term is either a constant or the

product of constant or single variable. And its applications are:

Determine Prices
Shows demand curve
Relationship between currencies
Change in interest rates and investment